Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Bank's Allowance for Loan Losses

The following is a roll forward of the Bank’s allowance for loan losses for the following periods:

(dollars in thousands)	Beginning Balance		Provision for Loan Losses			Charge-offs			Recoveries		Ending Balance
Quarter Ended September 30, 2016:
Real estate loans:
Residential properties	$	5,353	$	951		$	—		$	—	$	6,304
Commercial properties		1,887		572			—			169		2,628
Land and construction		272		(70	)							202
Commercial and industrial loans		4,139		31			—			—		4,170
Consumer loans		549		(253	)		—			—		296
Total	$	12,200	$	1,231		$	—		$	169	$	13,600
Nine Months Ended September 30, 2016:
Real estate loans:
Residential properties	$	6,799	$	(495	)	$	—		$	—	$	6,304
Commercial properties		1,813		696			(50	)		169		2,628
Land and construction		103		99								202
Commercial and industrial loans		1,649		2,521			—			—		4,170
Consumer loans		236		60			—			—		296
Total	$	10,600	$	2,881		$	(50	)	$	169	$	13,600
Year Ended December 31, 2015:
Real estate loans:
Residential properties	$	6,546	$	253		$	—		$	—	$	6,799
Commercial properties		1,499		624			(310	)		—		1,813
Land and construction		67		36			—			—		103
Commercial and industrial loans		1,897		1,665			(1,913	)		—		1,649
Consumer loans		141		95			—			—		236
Total	$	10,150	$	2,673		$	(2,223	)	$	—	$	10,600

Balance in Allowance for Loan Losses and Recorded Investment in Loans by Impairment

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by impairment method as of:

(dollars in thousands)	Allowance for Loan Losses								Unaccreted Credit
	Evaluated for Impairment				Purchased				Component
	Individually		Collectively		Impaired		Total		Other Loans
September 30, 2016:
Allowance for loan losses:
Real estate loans:
Residential properties	$	—	$	6,304	$	—	$	6,304	$	148
Commercial properties		—		2,628		—		2,628		149
Land and construction		—		202		—		202		3
Commercial and industrial loans		—		4,170		—		4,170		161
Consumer loans		—		296		—		296		20
Total	$	—	$	13,600	$	—	$	13,600	$	481
Loans:
Real estate loans:
Residential properties	$	3,844	$	1,559,963	$	—	$	1,563,807	$	13,472
Commercial properties		1,187		458,334		182		459,703		24,982
Land and construction		—		20,034		—		20,034		436
Commercial and industrial loans		2,653		221,238		4,688		228,579		24,157
Consumer loans		14		34,234		—		34,248		1,477
Total	$	7,698	$	2,293,803	$	4,870	$	2,306,371	$	64,524
December 31, 2015:
Allowance for loan losses:
Real estate loans:
Residential properties	$	—	$	6,799	$	—	$	6,799	$	127
Commercial properties		30		1,783		—		1,813		363
Land and construction		—		103		—		103		42
Commercial and industrial loans		—		1,649		—		1,649		187
Consumer loans		—		236		—		236		13
Total	$	30	$	10,570	$	—	$	10,600	$	732
Loans:
Real estate loans:
Residential properties	$	—	$	1,160,568	$	—	$	1,160,568	$	7,747
Commercial properties		6,275		352,162		354		358,791		43,287
Land and construction		—		11,180		1,140		12,320		4,267
Commercial and industrial loans		5,687		185,732		5,165		196,584		28,231
Consumer loans		76		37,130		—		37,206		1,761
Total	$	12,038	$	1,746,772	$	6,659	$	1,765,469	$	85,293

Risk Category of Loans by Class of Loans

Based on the most recent analysis performed, the risk category of loans by class of loans is as follows as of:

(dollars in thousands)	Pass		Special Mention		Substandard		Impaired		Total
September 30, 2016:
Real estate loans:
Residential properties	$	1,556,117	$	3,846	$	—	$	3,844	$	1,563,807
Commercial properties		456,548		—		1,968		1,187		459,703
Land and construction		20,034		—		—		—		20,034
Commercial and industrial loans		207,574		1,913		16,439		2,653		228,579
Consumer loans		34,234		—		—		14		34,248
Total	$	2,274,507	$	5,759	$	18,407	$	7,698	$	2,306,371
December 31, 2015:
Real estate loans:
Residential properties	$	1,159,029	$	1,539	$	—	$	—	$	1,160,568
Commercial properties		351,988		174		354		6,275		358,791
Land and construction		11,180		—		1,140		—		12,320
Commercial and industrial loans		180,755		4,977		5,165		5,687		196,584
Consumer loans		37,130		—		—		76		37,206
Total	$	1,740,082	$	6,690	$	6,659	$	12,038	$	1,765,469

Individual Evaluation of Impaired Loans and Related Allowance

Impaired loans evaluated individually and any related allowance are as follows as of:

	With No Allowance Recorded					With an Allowance Recorded
(dollars in thousands)	Unpaid Principal Balance		Recorded Investment			Unpaid Principal Balance		Recorded Investment		Related Allowance
September 30, 2016:
Real estate loans:
Residential properties	$	3,844	$	3,844		$		$		$
Commercial properties		1,187		1,187			—		—		—
Commercial and industrial loans		2,653		2,653			—		—		—
Consumer		14		14			—		—		—
Total	$	7,698	$	7,698		$	—	$	—	$	—
December 31, 2015:
Real estate loans:
Commercial properties	$	5,925	$	5,925	$		590	$	350	$	30
Commercial and industrial loans		7,770		5,687			—		—		—
Consumer loans		114		76			—		—		—
Total	$	13,809	$	11,688		$	590	$	350	$	30

Weighted Average Annualized Balance of Recorded Investment and Interest Income on Impaired Loans

The weighted average annualized average balance of the recorded investment for impaired loans, beginning from when the loan became impaired, and any interest income recorded on impaired loans after they became impaired is as follows for the:

	Nine months Ended September 30, 2016				Year Ended December 31, 2015
(dollars in thousands)	Average Recorded Investment		Interest Income after Impairment		Average Recorded Investment		Interest Income after Impairment
Real estate loans:
Residential properties	$	—	$	—	$	27	$	2
Commercial properties		1,788		5		6,487		281
Commercial and industrial loans		1,600		19		7,850		394
Consumer loans		3		—		105		—
Total	$	3,391	$	24	$	14,469	$	677